Currently, fraud pattern detection is a manual process that involves culling through billions of transactions to find fraud patterns. Fraud detection is not an exact science and often transactions from good customers are declined as well as fraudsters, thereby negatively impacting customer relations. The timeliness of fraud detection is also a major concern. In many instances, fraudulent charges are not discovered until the customer receives his or her statement and disputes the charge. By this time, fraudsters have made a major negative impact on their targets.
When fraudulent charges are detected, the customer will be told that his current card will be de-activated and a new card is on the way. During this waiting period, the customer is not able to use his card until he receives his new one.
Other drawbacks may also be present.